Despite CEO Jamie Dimon’s history of anti-bitcoin rhetoric, JPMorgan plans to pilot-test its own JPM Coin cryptocurrency later this year.
JPMorgan claims more of its clients in the United States, Europe, and Japan have been clamoring for its prototype cryptocurrency to accelerate securities trading such as bonds.
JPMorgan Tests ‘Crypto’ Amid Bitcoin Bull Market
Not surprisingly, this announcement comes just as the bitcoin price is soaring above $11,000 amid the beginnings of a potential crypto bull run.
Umar Farooq, the head of blockchain at JPMorgan, told Bloomberg that the JPM Coin could enable “instant” delivery of bonds on a blockchain. The JPM Coin operates on Quorum, an Ethereum-based blockchain platform JPMorgan developed with Microsoft.
“We believe that a lot of securities over time — in five to 20 years — will increasingly become digital or get tokenized.”
JPMorgan: We Still Need Regulatory Approvals
The timeline for JPM Coin’s implementation is still fuzzy, because it needs to clear regulatory hurdles. However, Farooq claims the JPM Coin’s development is progressing nicely.
“The technology is very good, but it takes time in terms of licensing and approval. As long as you are a bank, you must make sure that it does not violate the regulations of all the countries or regions where you operate in.”
JPMorgan is the largest U.S. bank, with $2.7 trillion in assets under management. In February 2019, JPMorgan became the first major US financial institution to launch its own cryptocurrency.
As CCN reported, the JPM Coin is supposed to serve as a stablecoin for clients holding US dollars in international jurisdictions.